Having your own home is both an asset and a liability. Firstly, you and your family are secure to have a roof above your heads. And most importantly, it is yours legally. But why is there a trend now in getting their home for sale and buying a new one?
Possible reasons might be personal or financially inclined, but the thing is that buying and selling a home at the same time is not that easy as you might think of it.
If you are interested in learning this new trend or might have been thinking of getting into one, this article can help you learn basic things you need to know when it comes to buying and selling homes.
Buying and Selling At the same time
In the real estate market, buying and selling at the same time is an option. Many realtors see this as cost and time-efficient since you can own a house while selling your old home, simultaneously.
If you are hardworking and take this option seriously, you can bag the two at once, and all your hard work will be paid off. However, buying and selling is already a tough job considering you are doing both difficult tasks at the same time.
Buying a new home is already a handful, and selling, on the other hand, is just as difficult. Not everyone is cut-out to do buying and selling at the same time, especially if you are not that experienced and knowledgeable with real estate.
Good thing, two other options might work for you. One is to buy first and the second one is to sell first.
Buying a new home is an exciting phase in a person’s life, but with life changes, your old home just doesn’t suit your current lifestyle. It is either your family is growing, or there is a need to be relocated.
But even with many hardships in buying a new home, many have high ideals when it comes to owning one rather than renting. So if you already have enough funds to support and pay off to buy a new home, buying first has a lot of advantages in line for you.
Here are the advantages:
Buying a new home gives you instant security. There is no hassle and worries about where to stay or even eliminate the idea of temporary renting, which is another expense.
You are not rushed into getting things ready like the packing, relocation, and other handling all your belongings. When you secure your new home, all you need to do is to arrange a relocation timeline with your seller.
The drawbacks are:
Buying a new home is expensive, and you need to secure an excellent realtor to assist you with this endeavor. Aside from that, you are paying two mortgages at once. Since your old home hasn’t been sold yet, and that’s a spot-on burden for you.
It is stressful enough to find a suitable location and excellent property, add on top of it is your daily errands and expenses. Buying first without steady income flow and resources will result in a high debt ratio, which is highly unfavorable for you.
Selling your old home might be a little daunting since there’s a lot of questions on your mind like, will somebody buy your house? Or things like how long should you post your home for sale?
A lot of dilemmas in selling your old house, yet there are favorable advantages that might be fitting for you.
Here are the advantages:
You know well how much cash flow you will have after you sold your house. This means more financial security for you and allows you to move and work the rest of your plans.
- Less debt issue
Paying your mortgages is already removed in the equation. Therefore, there is less debt issue to manage, which is the best thing you get when you sell your house first.
The drawbacks are:
- Moving hassle
Selling your property means you need to look for a new one until you can buy a new home. This requires you to move, pack your belongings, and relocate twice. A hassle not everyone is good at handling.
- Living expenses
Since you are renting, you double your living expenses that might affect your budget or worst you might be taunted to spend the money you earned when you sold your house.
Deciding on whether to buy a new home or sell your old one is a dilemma a homeowner faces one time in their lives. But there is no right or wrong in answering this dilemma. Whether you decide to do the latter or do both at the same time, what’s more, beneficial to you is what matters. You just need to weigh things first and look at the situation from a broad perspective before finalizing your decision.